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Penny Share Review 448

Monday 07 July 2008

1st Dental Laboratories (FDT) featured in Saturday’s Daily Telegraph, which reported a fall in the shares after it announced a “major profits warning”. Saturday’s Independent went further, noting broker Seymour Pierce cut it’s rating from ‘buy’ to ‘outperform’. There was no change in the price of 6.75p this morning.

The Daily Telegraph on Saturday reported that dealers couldn’t work out why trading on Friday was particularly light in some “more colourful” stocks. It went on that perhaps this had something to do with a crash of the ADVFN (AFN) website, described by the paper as “the message board website beloved of a certain type of private investor”, caused by a power-cut. Shares in the Company itself were unchanged at 2.775p earlier today.

Shares in Appian Technology (APN) improved on renewed bid hopes, reported the Daily Express on Saturday. The momentum seemed to spill over into this week, where the price rose by a further 0.075p to reach 4.55p.

CoffeeHeaven (COH) appeared in Saturday’s Times, which reiterated bid talk, noting that 55p-per-share would seal a deal from the right predator. Whitbread, owner of Costa, and Starbucks, was again detailed as a potential buyer, though Gerry Ford, owner of Caffe Nero, was suggested as being more likely, as he is thought to be keen to move into Poland. Bid rumours were also noted in the weekend’s FT and Saturday’s Express. However, despite this speculation the shares fell by 0.75p to 41.50p earlier this morning.

The ‘Deal of the Day’ section of The Times on Saturday included Conroy Diamonds & Gold (CDG), highlighting Chairman Richard Conroy’s acquisition of £47k worth of shares. This increased his stake to 28% and the article noted it followed news of upgraded estimates at the Company’s Clontribet license in County Monaghan. There was no change in the price, which remained at 4.375p, during early trading today.

Today’s Daily Telegraph highlighted Falkland Island explorers, such as Desire Petroleum (DES), and noted the ‘crazed band of retail investors’ that follow them. The piece commented that when the economy starts to struggle, the froth that caused rises seems to evaporate, and though some blame ‘shorters’ for decline in the share price, this market will give increasingly little leeway to companies with low sales to market cap ratios and weak cash positions. Following this press attention, the share price fell by 1.25p to 54.75p.

Shares in Earthport (EPO) “jumped” on “talk of more deals in the offing”, according to The Guardian on Saturday, and Saturday’s Daily Express stated talk of a deal with Lloyds TSB. However, the price was 1.00p lighter at 80.00p following this coverage.

The Weekend’s FT included EBTM (EBTM), reiterating news of its fundraising and CEO Richard Breeden’s comments that the funds would underpin the strategy of strong growth, whilst also noting last months Results. The shares were unchanged at 3.75p earlier today.

Irvine Energy (IVE) was “Tiddler to Watch” in The Times on Saturday, reporting a fall in the share price after a drilling update detailed interruption to production, but also that sales from Kansas are set to start in August. The article highlighted House Broker Evolution’s 11p price target, but the shares were 0.10p cheaper at 3.075p earlier. Nighthawk Energy (HAWK) increased in price on hopes of a positive drilling update, according to Saturday’s Daily Express. The shares were down by 0.50p at 92.75p this morning.

Saturday’s Daily Express remarked that talk was of an upbeat report from Italian operations by Northern Petroleum (NOP), though the share price was 4.00p worse off at 133.50p earlier today.

Saturday’s Express reported shares in Meridian Petroleum (MRP) increased on a positive gas production update. The price was 0.125p lower at 9.625p on Monday morning.

Tanfield (TAN) received much press attention over the weekend, unsurprisingly given recent developments. The Sunday Telegraph included a large article reviewing the Company’ s history and that of founder Roy Stanley. It noted calls to establish when the problems had been found, given Mr Stanley’s disposal of shares last summer, and highlighted a letter from broker Cenkos that called for an overhaul of financial operations, reporting, board membership and advisers, particularly the ‘sacking’ of St Helen’s Capital, which he part owns. An insider commented that it is going to take time to sort out, but there is a real business here and it is worth rescuing. Another article in the same paper reported the appointment of independent auditors to attempt to restore confidence and that the FSA is said to be looking at financial statements. Meanwhile, the Daily Mail in Saturday noted that the prospect of Adam Applegarth arriving as boss is not a prospect that fills investors with joy, citing such rumours for a fall in the shares. Prudential was said to be leading the call, though the article said it had stated nothing could be further from the truth. The weekend’s FT also reported the fall in the shares, this time highlighting that 2 hours after trading closed on Friday, it announced the Snorkel division had secured a $35m credit facility. Today’s Telegraph suggested that AIM is ‘riddled’ with Tanfields, and these companies are in for a tough time over coming months. There was some recovery in the price following this collective press, as the shares gained 1.31p to 6.17p.

Prices above were taken at around 12.30pm on Monday, 7 July 2008.

Announcements

The following companies, in which City Equities customers may have an interest, released announcements to the market this morning. These can be found by entering the relevant company name or ticker code in the search box on this site.

Black Rock Oil & Gas (BLR): Corporate Update.

Braemar Group (BRG): Director Shareholding.

Europa Oil & Gas (EOG): June Revenues top $1m.

First Artist Corp. (FAN): Group Update and Earn Out Payment.

Formation Group (FRM): Transaction in Own Shares.

Galleon Holdings (GON): Agreement with Hunan TV, China.

Henderson Morley (HML): Fish Vaccine Adjuvant Development.

Kryso Resources (KYS): Drilling Report.

Mediasurface (MSR): Alterian re: Mediasurface Offer.

Omega Diagnostics Group (ODX): Final Results.

Plus Markets (PMK): Holdings in Company.

Proventec (PROV): Notice of Results.

Regenesis Group (RGN): Cancellation of Admission to Trading on AIM.

Renewable Energy Holdings (REH): Trading Update.

Look out for this week

Monday, 7 July – Results from Omega Diagnostics (ODX). UK Industrial Production (May).

Tuesday, 8 July – UK Government House Price Figures (May). NIESR’sUK Monthly GDP Estimate.

Wednesday, 9 July – UK Trade Data (May). BRC Shop Price Index (June).

Thursday, 10 July – Venue Solutions (VSH) AGM. Bank of England Rate Decision.

Friday, 11 July – Nothing of note.

The next Penny Share Review will be posted on Monday, 14 July 2008.

Compiled by Chris Richards.

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